Bankrupt Exchange FTX Launches Strategic Reserve Review

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Cryptocurrency trading platform FTX announced that it has begun a review of its global assets and is preparing to sell or reorganize a number of subsidiaries.

FTX along with 101 of 130 affiliatescompanies went to court to allow a new global cash management system to operate and payments to their critical suppliers. The exchange and its affiliates filed
filing for bankruptcy in US Delaware11th of November. The reason was one of the most high-profile defaults in the history of the crypto industry, due to which about 1 million investors faced losses worth billions of dollars.

New FTX CEO John RayIII (J. Ray III) said that the exchange will consider selling its divisions. While emphasizing that some subsidiaries, such as cryptocurrency exchange LedgerX, are free from debtor claims at the time of filing for bankruptcy:

“In the coming weeks our priority will beexploring divestitures, recapitalizations and other strategically significant transactions with respect to these and other subsidiaries that we identify as our team continues to work.”

FTX asked the court for permission to pay $9.3 million to its most important suppliers before the court decision and up to $17.5 million after the final decision comes into force. The exchange warned that failure to obtain judicial approval would cause “immediate and irreparable harm” to its business.

FTX debtors simultaneously filed petitions fortaking temporary measures to the bankruptcy court, the hearing of which is scheduled for November 22. While there is no deadline set for the sale or restructuring, Ray asked all stakeholders to be patient.

Recently, the law firm Paul Weisssaid it would stop providing legal support to former FTX CEO Sam Bankman-Fried, citing a conflict of interest.